Ohio rehab center owner pleads guilty to $48M Medicaid fraud scheme

The former owner of two addiction recovery centers in Ohio pleaded guilty Oct. 4 for his role in fraudulently billing Medicaid more than $48 million, according to The Business Journal.

Ryan Sheridan, former owner of Braking Point Recovery Centers in Whitehall and Austintown, was charged in February for billing Medicaid millions for drug and alcohol recovery services that were never provided or were not medically necessary.

The 134,744 fraudulent claims totaling $48.5 million were filed between May 2015 and October 2017. The scheme caused Medicaid to improperly pay Braking Point more than $31 million, prosecutors said.

Mr. Sheridan and five of his associates faced six charges each, including conspiracy to commit healthcare fraud, money laundering and conspiracy to distribute controlled substances. They all pleaded guilty to the scheme.

Mr. Sheridan and his associates will be sentenced on Jan. 23 and face up to 14 years in jail.

In addition to jail time, the government is also seeking restitution of $24.48 million on behalf of the Ohio Department of Medicaid, Assistant U.S. Attorney Mark Bennett told The Business Journal.